CBOE Holdings (CBOE) Q1 Earnings Beat Estimates, Grow Y/Y
Zacks Investment Research | May 09, 2017 09:38PM ET
CBOE Holdings, Inc.’s (NASDAQ:CBOE) first-quarter 2017 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate of 68 cents by 14.7%. Also, the bottom line jumped 27.9% year over year.
Results were driven by higher revenues, partially offset by increased expenses. The company recorded increased trading volume in the quarter.
Adjusted net income allocated to common stockholders surged 44.7% year over year to $72.2 million.
On a GAAP basis, net income allocated to common stockholders was $15.1 million or 16 cents per share compared with $49.2 million or 60 cents per share in the prior-year quarter.
Notably, CBOE Holdings completed the acquisition of Bats Global Markets, Inc. on Feb 28, 2017. The company remains focused on utilizing opportunities to boost financial strength, accelerate strategic growth initiatives and access new areas of growth to deliver greater value to shareholders.
Edward T. Tilly, CBOE Holdings' Chief Executive Officer, stated, "While the Bats integration is a top priority, we also remain laser focused on growing our proprietary products. Despite record low realized volatility in the first quarter, trading on VIX futures rose 18 percent while trading in our index options increased 7 percent compared with first-quarter 2016, led by record trading in SPX options and significantly outpacing the options industry, which posted a 4 percent decline in average daily volume.”
Operational Details
In the first quarter, total revenue came in at $356.2 million. The top line outpaced the Zacks Consensus Estimate of $202 million by 76.3% and also skyrocketed 108.9% year over year. On an adjusted basis, revenues soared 35.2%. Net revenue contribution of $39.2 million from Bats Global Markets for March as well as increase in transaction fees and other revenues drove the upside.
Total trading volume of CBOE Holdings rose 9% year over year to 7.1 million contracts. Total revenue per contract (RPC) for Options declined 8.7% year over year to 24.2 cents. Total RPC for U.S. Futures increased 10.4% year over year to $1.814.
Total operating expenses increased 163.1% year over year to $167.3 million, primarily due to higher professional fees and outside services, compensation and benefits, depreciation and amortization, technology support services and incremental operating expenses related to the buyout of Bats Global Markets in March. On an adjusted basis, expenses increased 25.4% from the prior-year quarter.
Get The News You Want
Adjusted operating margin expanded 10 basis points year over year to 59.9%.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.